Digital transformation and value chains: Introduction

Abstract

New digital technologies based on the internet of things and artificial intelligence play centre stage in contemporary discussions about the prospects for economic development and the future of work. This article summarizes theoretical and empirical contributions on how these technologies affect global value chains (GVCs). We argue that the leading paradigms that analyse global production -the GVC framework and the related global production networks (GPNs) approach -are in need of some 'technological uprading' themselves. The GVC/GPN approaches acknowledge that technology is constitutive for the emergence of geographically fragmented production, but rarely address directly how technological change affects interfirm relations. The authors provide a framework that acknowledges the key role of technology while situating digital tools and systems in their social embeddedness, that is the role of human agency and institutions in shaping their development and impact. A research agenda is outlined focusing on three topics: the varieties of digitalization approaches in different world regions, the role of data as a specific form of intangible resource and the role of platform business models for industrial ecosystems. These topics are addressed in the special issue of Global Networks on 'Digitalization and Value Chains' introduced by this contribution.

Theorizing globalized production and digitalization: Towards a re-centering of value

“…Given the heterogeneity of sectors, how these scenarios play out will relate to the nature of actors, products/service producers and transactions occurring (Foster et al, 2018; Sturgeon, 2021). Some studies also highlight cross-sectoral trends that occur beyond specific GVC (Butollo et al, 2022; Howson et al, 2022; Kenney and Zysman, 2020). Digitalization can define multifaceted (direct, standards, infrastructure) and multi-sectoral domains of coordination with implications for the concentrations of power and control.…”

Employee involvement and participation in digital transformation: a combined analysis of literature and practitioners' expertise

“…Organizations across sectors are seeing their operations rapidly digitalized. Debates on digital transformation focus mainly on technical aspects (Butollo et al, 2022;Matt et al, 2015), but increasing attention is being paid to labor-and employee-related implications such as changes in employee participation practices (Kane, 2019;Bosch and Schmitz-Kießler, 2020;Tabrizi et al, 2019). Transformation projects heavily rely on the involvement of their employees to increase implementation velocity (Hussain et al, 2018) and transformation success (Sverke et al, 2008).…”

“…Organizations across sectors are seeing their operations rapidly digitalized. Debates on digital transformation focus mainly on technical aspects (Butollo et al ., 2022; Matt et al ., 2015), but increasing attention is being paid to labor- and employee-related implications such as changes in employee participation practices (Kane, 2019; Bosch and Schmitz-Kießler, 2020; Tabrizi et al. , 2019).…”

Editorial: “Digital tools, innovation and competitiveness: lessons for the digital transition”

“…The global shock caused by COVID-19 created many challenges and risks for countries and regions. Digital tools showed their potential to provide innovations solutions for the unexpected turbulences caused by the pandemic, from digital tools for education (Mahmud et al , 2022; Rosenberg et al , 2022; Weilage and Stumpfegger, 2022; Yu, 2022) and innovative tools for the management of global value chains (Butollo et al , 2022; Cusumano et al , 2019; De Propris and Pegoraro, 2019; European Commission, 2023a; Yeung, 2021), to artificial intelligence (AI) and internet of things (IoT) for the health care (Ienca and Vayena, 2020; Lytras et al , 2009; Ordóñez de Pablos et al , 2022; Pretorius and Coyle, 2021; Zhang et al , 2015), for example. The transition toward a digital and green economy brings new challenges but also opportunities for the creation of jobs and boost competitiveness.…”